The German health care company would pay $30 per each share to the NxStage shareholders for the merger transaction.

The acquisition of the Boston-headquartered medical technology and services company would provide a launch pad for Fresenius Medical Care in the critical care space in the US.

Established in 1998, NxStage has a workforce of around 3,400 employees. The firm develops, produces and distributes a product portfolio of medical devices associated with home dialysis and in the critical care setting.

NxStage Medical founder and CEO Jeff Burbank said: “The combination of Fresenius Medical Care’s industry leadership with NxStage’s innovative products and employees has the potential to significantly advance the standard of care for patients around the world.

“Fresenius Medical Care would like us to continue doing what we do best, and a lot more of it. I strongly believe our opportunities would be greater working together for the benefit of patients, customers and shareholders.”

NxStage’s last year earnings were $366m and its acquisition is estimated to create initial net cost synergies potential in the range of $80-100m per annum before tax in the next three to five years period.

Fresenius Medical Care, through the acquisition expects to leverage its manufacturing, supply chain and marketing abilities further in a less labor- and capital-intensive care setting across the dialysis products, services and care coordination businesses.

Fresenius Medical Care chairman and CEO Rice Powell said: “The acquisition supports our 2020 strategic initiative of driving growth in the core business with innovation, better clinical outcomes through Care Coordination and improving the patient experience.

“Combining our two companies would strengthen and diversify our business in the U.S. and help meet the evolving needs of our patients.”

Approved by the board of NxStage, the merger transaction is yet to be approved by the company’s stockholders. Subject to regulatory approvals and meeting of other customary closing conditions, the deal is anticipated to be completed in 2018.


Image: Fresenius headquarters in Bad Homburg, Germany. Photo: courtesy of Fresenius Medical Care AG & Co. KGaA.